What area is your expertise?
West Michigan — Traverse City to Benton Harbor.
What type of retail product is doing well in your area?
Grocery and gas.
What retailers are new to your area?
Sonic and Johnny’s Lunch.
Who are the active retail developers in your area?
Several wish they were active, however, the lack of retailers coupled with the lack of financing has prevented several deals from moving forward.
Please name one or two significant retail developments in your area. What impact will these projects have on the market?
The Corner Shops, southeast corner of East Beltline and 28th Street SE, Jared’s and other inline retailers. Minimal impact on the market in general. Evergreen Properties proposed Lifestyle Center at the NE corner of Knapp and East Beltline avenues. They’ve secured D&W Grocery Store and have tentative agreements with several other retailers. It will be interesting to see what happens with the Aikens proposed development, which is less than one mile north of this site. Acquisition of the former Rogers Department store by Israel’s fine furniture on 28th Street SE will clearly have a dramatic impact on the southwest section of 28th Street.
Where is the majority of development taking place? Why is this area doing well?
The northeast quadrant — as well as the Grandville area — are still the most attractive areas of the market because of the demographic makeup of each respective area.
What area do you expect to be the next big retail development market? Why?
Future development along the M-6 corridor as well as West of Grand Rapids towards the main campus of GVSU.
Please describe the retail leasing activity in your area.
Leasing activity has picked up over the last several months, however, it is a mixture of new locations with relocations.
What major leases have been closed recently?
Pending lease between Spartan Stores – D&W – with Evergreen Properties for the East Beltline site described above.
What types of retailers should look into your market in the coming year? What type of retail is needed?
High-end women’s apparel, organic/natural foods grocery, and high-end furniture.
Would you like to make any additional observations about the retail market in your area?
The market is very stable. We are simply waiting for one of the many proposed large development deals to put some energy back into the market.
Submitted by Robert Lotzar, vice president/retail advisor with CB Richard Ellis/Grand Rapids.